Over 75% of Canadian small businesses polled are operating without cyber insurance: here’s why that’s a hack approach to managing cyber risk

TORONTO, October 25, 2017 — TruShield Insurance recently polled Canadian entrepreneurs across the country to find out how they protect their businesses from the growing threat of cybercrime. Findings revealed that there are a number of cyber security myths floating around that are leaving small business owners unnecessarily vulnerable.

In the spirit of Canadian Small Business Month, TruShield wants to set the record straight by debunking those myths. To help us do that we connected with BlackBerry’s Cybersecurity Consulting Group to get additional insights on how Canadian small businesses can best protect the companies they’ve worked so hard to build.

Here’s what Patrick Cruikshank, TruShield’s cyber insurance expert, and Rory Macleod, leader of BlackBerry’s Cybersecurity Consulting Group, have to say about the top four cybersecurity myths from our survey.

Myth 1: Data doesn’t need to be backed up regularly — 33% of Canadian small businesses polled don’t back up their data at least once a week.

“How often you back up your data directly correlates to how vulnerable your business is after a cyberattack,” said Cruikshank. “Considering how beneficial and easy it is to perform a back-up, that 33% should be a lot closer to zero.”

“The only way to mitigate a large malware infection that locks you out of your computer system is referring back to your latest uninfected backup,” explained Macleod. “If you don’t have that available, then you are truly at the mercy of the virus and the hackers. When you do perform a back-up, make sure you’re storing it on a separate network since malware can spread across an entire system.”

Myth 2: Customer data only needs to be protected if it’s related to financial information.

“Businesses may be more likely to protect customer data of a financial nature, but the reality is that hackers and other criminals don’t need financial information to seriously damage a person’s finances,” says Cruikshank.

“Many online retailers collect information to provide a birthday discount which can require a customer’s name, date of birth, address and a log-in password they might use across systems,” explains Macleod. “This seemingly innocent promotion can give hackers a great jump-off point to commit identity theft.”

Myth 3: A class-action lawsuit is the only risk to a business whose customer information has been hacked — almost three quarters of businesses polled without insurance aren’t confident they have the financial resources to survive a class action lawsuit that may result from a cyberattack. But what about the other risks?

“The lost revenue from cyberattacks goes beyond lawsuits,” said Cruikshank. “Losses can stem from reputation management costs, business interruption and hiring professionals to restore your data—which is highly recommended.”

“These costs can add up quickly, which may have greater implications for small businesses,” explained Macleod. “The average cost of recovering from a hack that may be negligible to a large multinational that’s worth billions, but can have a much more devastating effect to a smaller business.”

Myth 4: A business that stores electronic data isn’t better off with cyber insurance — 77% of Canadian small businesses polled operate without cyber insurance.

“You can’t research your way to an effective response plan,” says Macleod. “Executing a recovery strategy as soon as you get hacked can help mitigate the negative impact on your business from a financial and reputational perspective.”

“Cyber Insurance can help your business secure lawyers, PR companies, security specialists and all the other resources you’ll need at your fingertips following a cyberattack,” adds Cruikshank.

The reality is that any business, regardless of their size or resources, could be a few mouse clicks from suffering a cyberattack. Thankfully, a cyber insurance policy to protect you is also just a few clicks away—and that’s no myth.

About Trushield insurance

TruShield Insurance is a proud supporter of Canada’s small business community. We are 100% Canadian and owned by Fairfax Financial Holdings Limited. We focus on serving Canadian small business owners, entrepreneurs and startups. We provide affordable, flexible, and tailored insurance solutions for small businesses. Visit us online at trushieldinsurance.ca to learn more about our products and request a quote.

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